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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 10/18/2010MINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION {TYPE A) REGULAR MEETING CITY HALL -COUNCIL CHAMBERS OCTOBER 18, 2010 - 3:00 P.M. PRESENT: Members: Eloy Salazar, President Brad Lomax, Vice President Foster Edwards Robert Tamez ABSENT Adolfo (Butch) Escobedo Staff: T Angel R. Escobar, Executive Director Armando Chapa, Secretary Jay Reining, Assistant City Attorney Cindy O'Brien, Interim Asst. City Manager Margie Rose, Assistant City Manager Emily Martinez, Economic Development A. Called meeting to order -President Salazar called the meeting to order at 3:08 p.m. B. Roll Call - President Salazar verified that the necessary quorum of the Board were present to conduct the meeting. 1. Approrral of Minutes - Mr. Tamez made a motion to approve the minutes of September 20, 2010, seconded by Mr. Lomax and passed (Escobedo absent). 6. Motion to amend the Corporation's Guidelines & Criteria for Granting Business Incentives relatin to Non-Standard Em to ees. -Mike Culberson, Corpus Christi Regional Economic Development Corporation (EDC), explained that the EDC is recommending the guidelines be amended to include language that would allow for employers to receive incentives for using non-standard employees and a new gross payroll incentives chart. The following topics pertaining to this item were discussed: whether the changes would negatively affect business owners; the use of lease employees by companies; the reason for changing the language; if contracts have been lost because this language has not been part of the guidelines; and the requirement that employers be located in the city limits. Mr. Edwards made a motion to amend the City of Corpus Christi, Texas Business & Jab Development Corporation Guidelines & Criteria far granting business incentives, which were approved by the Board of Directors of the Corpus Christi Business and Job Development Corporation on September 10, 2007, and by the Corpus Christi City Council on September 18, 2007, to recognize non-standard employees, seconded by Mr. Tamez and passed (Escobedo absent). 2. Closed meeting under §551.087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information that the Board has received from, or to deliberate the offer of a financial or other incentive to, a business ros ect that the Board seeks to have locate sta or ex and in or near the city and with which the Corporation is conducting economic development negotiations, with passible discussion and action in open session. ~~~~~~ Type A Meeting October 18, 2010 -- Page 2 *Project 360 *Project Sunrise *Project Toccer *Project Pathfinder President Salazar announced the closed session, The Corporation went into closed session. The Corporation returned from closed session. Joe Cisneros, EDC, provided a brief overview of the business incentive agreements for each project including the capital investment, projected payroll; and the retention and creation of jobs. Mr. Lomax made a motion authorizing the President to execute a Business Incentive Agreement with APAC Customer Services, Inc., that will award grants of up to $1,375,000, if APAC invests $3 million in capital improvements and equipment and retains at least 264 existing jobs and creates at least 184 new jobs, with an average annual salary of at feast $20,592, over a five year period and appropriating the amount needed to fund the grant from the Corporation's available economic development funds. This motion is contingent upon approval of the final agreement, which has been executed by APAC, by the City Council and the voluntary termination of the existing Business Incentive Agreement with APAC, dated January 8, 2008, in which APAC agreed to 485 employment positions (418 full time and 67 part time} with an average annual salary of $20,800, and an annual payroll of $11,200,000 through June 30, 2012. The motion was seconded by Mr. Edwards and passed (Escobedo absent}. Mr. Tamez made a motion authorizing the President to execute a Business Incentive Agreement with Oneta Company that will award grants of up to $295,260, if Oneta invests $6.7 million in capital improvements and equipment and retains at least 52 existing jobs and creates and maintains at least 25 new jobs, with an average annual salary of at least $30,935, over a five year period and appropriating the amount needed to fund the grant from the Corporation's available economic development funds. This motion is contingent upon approval of the final agreement, which has been executed by Oneta, by the City Council. The motion was seconded by Mr. Lomax and passed (Escobedo absent}. Mr. Edwards made a motion authorizing the President to execute a Business Incentive Agreement with TDL Plastics, LLC, that will award grants of up to $50,000, if TDL Plastics invests $270,000 in capital improvements and equipment and retains at least 8 existing jobs and creates at least 5 new jobs, with an average annual salary of at least $70,000, over a five year period and appropriating the amount needed to fund the grant from the Corporation's available economic development funds. This motion is contingent upon approval of the final agreement, which has been executed by TDL Plastics, by the City Council. The motion was seconded by Mr. Tamez and passed {Escobedo absent). Mr. Tamez made a motion authorizing the President to execute a Business Incentive Agreement with PathFinder Energy Services, LLC, that will award grants of up to $87,500, if PathFinder invests $3.7 million in capital improvements and equipment and creates and maintains at least 15 new, full-time jobs within the City, with an average annual salary of at least $70,769, over a five year period and appropriating the amount needed to fund the grant from the Corporation's available economic development funds. This motion is contingent upon approval of the final agreement, which has been Type A Meeting October 18, 2010 -Page 3 executed by PathFinder, by the City Council. The motion was seconded by Mr. Edwards and passed (Escobedo absent). 3. Financial Report -Interim Director of Financial Services Constance Sanchez presented the sales tax report updated through August sales, September collections, and October allocations; the cash flaw statements; and the commitment reports for the economic development fund. A motion was made by Mr. Tamez to approve the financial report, seconded by Mr. Lomax and passed (Escobedo absent}. 4. Request from Charlie's Place for lob training funds, with possible action. - President Salazar announced that Mr. Lomax would abstain from the discussion and vote on this item. Amy Granberry, Director of Organizational Development for Charlie's Place, presented a video on the benefits of Charlie's Place and referred to a powerpoint presentation on the proposed employment training program including the goals of the program; implementation; the program elements; the benefits to employers; the budget; outcomes; and the benefi#s to clients and the community. The following topics pertaining to this item were. discussed: the amount requested by Charlie's Place; concerns that the budget presented includes a surplus amount; whether the Corporation can pay for the expenses presented in the budget; the cost per student; amending the guidelines to detail job training; how long participants would be in the program; how the surplus money would be used; the an#icipated number of students in the program and anticipated employment per year; and making the contract performance based. President Salazar requested that Charlie's Place meet with staff to address the goals of the program and include the number of students in the program and the costs per student. Mr. Tamez made a motion to table action on this item, seconded by Mr. Salazar and passed {Lomax abstained; Escobedo was absent). 5. Motion authorizing the purchase of hockev ice coveringlsubfloor materalsfor the ABC Arena in an amount not to exceed 15 fiOU. -Assistant City Manager Margie Rose explained that in February 2010, the Board tabled the purchase for the ice coveringlsubfloor materials in the amount of $15,600 because there was concern that there would not be hockey in Corpus Christi. Ms. Rose stated since there is still hockey at the American Bank Center {ABC), ABC is requesting the approval of this item. Russell Meyer and Kim Gregory with ABC were available to respond to questions. Mr. Tamez made a motion to authorizing the purchase of hockey ice coveringlsubfloor materials for the ABC Arena in an amount not to exceed $15,600, seconded by Mr. Lomax and passed. 7. Motion authorizin the Cor oration's Executive Director b exchan in of leters with Vanguard Hall Consulting Firm, Inc., to authorize an amendment to the Affordable Housing Project Agreement for homebuyer assistance,_relatin t Type A Meeting October 18, 2010 -Page 4 timing of performance under the agreement, by extending the expiration date of the agreement from September 30, 2010 until January 31, 2011, as authorized by Section 8.b. of the Affordable Housin Pro`ect A reement. - Director of Neighborhood Services Eddie Ortega explained that Vanguard is requesting a third amendment to their contract to extend the term of the agreement to January 31, 2011 and staff supports this request as the final extension to the Vanguard Ha[I agreement. Mr. Edwards made a motion to approve the amendment with Vanguard Hall Consulting Firm, Inc., seconded by Mr. Tamez and passed (Escobedo was absent). 8. Discussion of Affordable Housing Ballot language, with possible _action. - Executive Director Escobar stated that this item is a request from the Board for staff to review the ballot language for affordable housing. Assistant City Attorney Jay Reining explained that staff verified that the funding for affordable housing was appropriated for 2006-2007 and can be spent on affordable housing projects. 9. Discussion of chances to the Agenda format. -Assistant City Manager Rose provided examples of the changes to the agenda format to make the packet more professional and easier to follow. H. Public Comment: -Patricia Noyola asked questions regarding the future of affordable housing. President Salazar directed staff to place an item on the agenda for future discussion. Ms. Noyola explained that she would like to make a formal presentation on the concept of an affordable housing subdivision. Adjournment: There being na other business to come before the board, President Salazar adjourned the meeting at 5:02 p.m.